Legal Framework for the Regulation of Abandonment and Decommissioning in Nigeria

Abstract

The global recognition of the importance of decommissioning and restoring abandoned oil and gas
installations is driven by the need to return ecosystems to their original state. Two factors in Nigeria make
it essential to consider the nation’s abandonment and decommissioning provisions. First, several onshore
oil fields are maturing. Secondly, many international oil companies (IOCs) are transferring their assets to
indigenous companies with little proven competence in decommissioning and abandonment. Before the
Petroleum Industry Act 2021 (PIA), Nigeria did not have a comprehensive legal framework for regulating
abandonment and decommissioning of oil and gas operations. However, the PIA has addressed this lacuna,
along with accompanying regulations. This has necessitated research to assess the adequacy and
effectiveness of the laws regulating decommissioning oil and gas installations in Nigeria and their impact
on mitigating environmental degradation risks. This study adopts an analytical approach using current
literature to apply the doctrinal library-based legal technique. The study reveals that the primary legal
frameworks have improved environmental protection, addressed concerns of host communities, and
regulated post-exploration and exploitation activities in oil and gas fields in Nigeria. However, it also
highlights the lack of enforcement and implementation structure. The paper concludes by recommending
that the enforcement arm takes up the responsibility to implement the legal provisions on abandonment and
decommissioning to address abandonment and decommissioning effectively.